CPC Put/Call Ratio and SPX S&P 500 Daily Charts

The CPC and CPCE put/call ratios continue languishing on the complacent side as the whipsaw choppy slop continues in the stock market. For the CPC, above 1.2 is where panic and fear is setting-in so that is when you want to nibble long. Below 0.8 is when the fearlessness and complacency are too high and you want to bring on shorts.

It has been a muddled bunch of chop suey lately. The low 0.94 represents continued complacency. The last real panic bottom was as the year began. Remember all the Wall Street big shots saying stocks would tank to begin the year and the opposite occurred? All the dimwits had to do is look at the CPC chart and see that the panic and fear was off the charts, confirming their worry, and that is the time to buy not sell. You run into the burning building while others are running away with their hair on fire. You gladly take their shares that they desperately want to get rid of but of course you tell them you must buy them cheap. Thanks, sucka.

Conversely, when everyone is complacent, like now (despite the idiot pundits professing fear and worry), you must lean-in on the short side because another big move lower is on the come. The drop a week ago was only one hundo SPX points and if you blinked you missed it. Dip-buyer's were foaming at the mouth to buy representing the ongoing complacency. It would be great to see the CPC drop further because then you know the top in the stock market is any day forward. It may be any day forward now and in fact the high 2 days ago may hold as a top.

The utilities are in failure mode placing the US stock market into a crash profile currently. The failure in the utes is bigtime predicting serious doom and gloom ahead so you must prepare for this coming mayhem. The bottom in the CPC last week hinted that the top may be at hand beginning some real ugliness but alas, stocks remain buoyant.

The SPX 2-hour chart stumbles sideways. It needs to set up with a little rally so negative divergence can set up and the top can be called. For now, the stock market keeps stumbling choppy sideways chewing up bulls and bears alike.

The moving averages are lining out sideways for the SPX so as a gauge of market direction and strength use the 50-day MA at 4014 to signal huge upside ahead and the 200-day MA at 3931 to signal the start of blood and carnage. The choppy slop and stock market noise continues through 3931-4014.

Remain leery of the stock market and stay nimble. It would be great to see a rally in stocks since that can set up the top and the start of the big drop that is likely coming. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.